Global gold prices have surged to over USD 1,300 per ounce after Donald Trump's win in the US presidential elections, and the investment demand for the yellow metal is expected to rise amid uncertainity over monetary policy measures, World Gold Council (WGC) said today.
In the national capital, gold prices today shot up to 3-year high of Rs 31,750 per 10 gram, taking cues from the global market.
"Financial markets have fallen sharply in response to Donald Trump's election as the 45th President of the United States. Equity markets are down notably in Asian and early European trading. Gold has, by contrast, increased, outperforming other assets, including other safe havens," WGC Managing Director Central Banks and Public Policy, Natalie Dempster, said in a statmeent.
It is currently trading at over USD 1,300 per ounce, compared with USD 1,275 per ounce before the vote counting began, he said.
Stating that gold trading volumes have risen sharply in Asia, Dempster said, "Western markets, which have just opened, will likely see a continuation of that trend."
Short-term volatility in the wake of the US election is inevitable, as it signals a major political and economic change, he added.
Dempster also said, "We are seeing increasingly fractious politics across the advanced economies, and this trend, combined with uncertainty over the aftermath of years of unconventional monetary policy measures, will firmly underpin investment demand for gold in the coming years.
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